Do I need a letter of appointment (LOA) in Iowa?
Sometimes. If a loved one passed away with an asset in Iowa, a letter of appointment is not always required.
What is a letter of appointment?
A letter of appointment is a court-issued document. If a deceased person owned assets at the time of death that require supervision to transfer, then a letter of appointment is required to have the legal authority to handle the asset. Not all assets require court supervision. An attorney who practices probate law in Iowa can best analyze whether a letter of appointment is required. (See “What does probate mean?”)
When is a letter of appointment not needed for an Iowa estate?
It depends on how the asset in Iowa is owned.
If the asset has a surviving joint owner, then that surviving joint owner has control of the asset and can communicate directly with the financial company.
If the asset has a named beneficiary or a payable-on-death (POD) designee, then that person can communicate directly with the financial company.
If the asset has neither of the above AND is not real estate AND the asset is less than $50,000, then a small estate affidavit can be used. (See “Very Small Estates in Iowa”).
Under all of the above circumstances, a letter of appointment (LOA) for an Iowa asset is not required. An LOA is issued by the court when the asset is required by the law of the decedent’s state to transfer or sell the assets. If you open an estate and obtain a LOA in Iowa when one isn’t needed, you will have a mess on your hands. Hope Wood JD has experience handling estates in probate when court supervision is not needed.
When do I need a letter of appointment for an Iowa estate?
If the asset requires court supervision to sell or transfer then a letter of appointment is needed. Common assets that require court supervision include:
Real estate with no surviving joint owner or the decedent owned real estate as tenants in common. (See “Probate and Real Estate in Iowa”)
A non-real estate asset valued at more than $50,000.
If a financial company says you need a letter of appointment, it is not a legal determination that an estate must be opened with the probate court. The employees’ instructions may say to ask for the letter of appointment in all circumstances.
If you are unsure of the asset's value, you can look for the information in the following ways:
Prior year tax returns
Quarterly statements that are mailed
Bank statements that are mailed
Year-end statements that are mailed
Who issues a letter of appointment for an Iowa Estate?
First, speak with an attorney to ensure that court supervision is needed for the transfer of the asset. (See “Do I need a Probate Attorney”. If you don’t need court supervision and you petition the court to be appointed as the administrator of the estate, you will be liable to complete the legal requirements under the Iowa Probate Code.
After it is determined that court supervision is needed to transfer the asset, the executor of the Last Will and Testament has to file a Petition for probate of a Will. If there isn’t a Will, then an interested person (including creditors) can file a Petition for probate administration.
If the Will doesn’t waive bond or if there isn’t a Will, then the Petitioner has to get a bond or obtain signatures consenting to the waiver of bond.
The Petitioner also has to file an oath with the Court promising to abide by all legal requirements of Probate.
When the district court judge reviews the Petition and verifies the required filings, they will enter an Order. The Clerk of Court will issue a letter of appointment after receiving the Judge’s Order.
How do I know if I need a letter of appointment?
The best way to know if you need a letter of appointment is to consult a probate law attorney in Iowa. The attorneys at Hope Wood JD specialize in probate law. If you are still looking for information, check out our Iowa Probate FAQs.
